Many Americans do some type of business from home. For many people like single parents or housewives looking to make some extra money, a home-based business is an ideal situation. There are certain advantages in running a business out of your home. There’s no commute, and you don’t have to pay for a separate building to start with. So, if you have a home-based business, is there any reason you should consider a separate insurance policy for your business?
Some people have misconceptions about home-based businesses and insurance. One of the more popular beliefs, and one that keeps home business owners from getting business insurance is that your homeowner’s or renter’s insurance will cover your home business. The fact is, your homeowner’s or renter’s insurance is most likely not enough when it comes to your business. The truth is, if you’re using your home for purposes other than what your insurer is aware of could void your policy.
Suppose you have an employee working with you and that employee gets hurt, or if a client gets hurt at your home business, your insurance may not help you out. What if a client gets injured on your property and decides to sue you, you may be on your own. Your homeowner’s insurance will only pay for injury claims for guests on your property, not business-related visits.
If you keep inventory at home or have expensive business equipment at your home business they may not be covered if something happens. Will your business shut down if there is damage to your home? The loss of income while your home is being repaired won’t be covered with a homeowner’s or renter’s insurance policy.
If you don’t want to expose your home business to a disaster without insurance coverage it may be as simple adding a rider to your existing homeowner’s or renter’s policy. Don’t wait until something bad happens, go see your agent as soon as you can.